Korea Gas Corporation (KOGAS) held a board meeting on September 18 and approved investment — through equity contribution and lending — in the Phase 2 expansion of the LNG Canada project via its wholly owned subsidiary KOGAS Canada Energy. If this investment is finalized, LNG Canada’s production capacity is reported to double from 14 million to 28 million tonnes per year.
LNG Canada is a liquefied natural gas (LNG) liquefaction and export project located in Kitimat, British Columbia, Canada, in which KOGAS holds an equity stake through KOGAS Canada Energy. The Phase 2 expansion is reported to involve constructing two additional liquefaction units and five compressors alongside the existing facility, along with an extension of the existing 670-kilometer pipeline. However, this investment approval represents an internal procedural step on KOGAS’s side, with final confirmation reported to be contingent on a final investment decision (FID) by other project partners, including Shell.
Upon completion of the Phase 2 expansion, LNG Canada’s total production capacity is reported to double from 14 million to 28 million tonnes per year. KOGAS’s stake in KOGAS Canada Energy is confirmed at 5%. Upon completion, KOGAS’s annual LNG offtake volume is expected to increase from 700,000 to 1.4 million tonnes.
This investment approval is seen as part of KOGAS’s strategy to diversify its long-term LNG procurement portfolio and expand its volume of Canadian-sourced LNG. Reuters is reported to have projected that LNG Canada partners could reach a final investment decision as early as October.